C A R O (2003)

[loganathan devarajulu]

applicability of the  CARO  COMPANY'S AUDIOTRS REPORT  ORDER 2003 in the case of the pvt ltd co having paid up capital and reserves exceeding  Rs. 100 00 000/-

the turnover of the co does not exceed five cores

the co does not accejpted any public deposits

the co does not availed any loan exceeding rs. 25,00,000  from any financial institution and banks  

Exception of caro :-

private limited company with a paid up
capital and reserves <= Rs.50 lacs and has not accepted any public deposit
and does not have a loan outstanding from any bank or financial institution of
=> Rs.10 lacs and does not have a turnover > Rs.5 crores

 

for non appllicability all four codition is requred to be fulfilled

otherwise CARO is applicable

Company's Auditor's Report order does not talk about satisfaction of all the conditions in order to be applicable for a private limited company. since the paid up share capital and reserves of the company exceeds Rs. 50 Lakhs as has been mentioned, CARO requirements shall become applicable.

AI Summary

Applicability of CARO requirements: exception applies only where capital, deposits, borrowings and turnover all meet prescribed low thresholds.
A private company qualifies for the CARO exception only if all four conditions are met: paid up capital and reserves below the prescribed threshold, no public deposits accepted, no borrowings from banks or financial institutions above the prescribed limit, and turnover below the statutory ceiling; failure to satisfy any one condition makes CARO reporting requirements applicable.